Journal article
Dynamics of oil price, precious metal prices, and exchange rate
Energy economics, v 32(2), pp 351-362
2010
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
This study examines the co-movements and information transmission among the spot prices of four precious metals (gold, silver, platinum, and palladium), oil price, and the US dollar/euro exchange rate. We find evidence of a weak long-run equilibrium relationship but strong feedbacks in the short run. The spot precious metal markets respond significantly (but temporarily) to a shock in any of the prices of the other metal prices and the exchange rate. Furthermore, we discover some evidence of market overreactions in the palladium and platinum cases as well as in the exchange rate market. In conclusion, whether there are overreactions and re-adjustments or not, investors may diversify at least a portion of the risk away by investing in precious metals, oil, and the euro. Policy implications are provided.
Metrics
Details
- Title
- Dynamics of oil price, precious metal prices, and exchange rate
- Creators
- Ramazan Sari - Middle East Technical Univ., Dep. of Bus. Admin., 06531 Ankara, TurkeyShawkat Hammoudeh - Drexel University, LeBow College of Business, Philadelphia, PA 19104, USAUgur Soytas - Middle East Technical Univ., Dep. of Bus. Admin., 06531 Ankara, Turkey
- Publication Details
- Energy economics, v 32(2), pp 351-362
- Publisher
- Elsevier
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000274774000011
- Scopus ID
- 2-s2.0-74249107418
- Other Identifier
- 991014878202404721
UN Sustainable Development Goals (SDGs)
This publication has contributed to the advancement of the following goals:
InCites Highlights
Data related to this publication, from InCites Benchmarking & Analytics tool:
- Collaboration types
- Domestic collaboration
- International collaboration
- Web of Science research areas
- Economics